Larsen & Toubro frontrunner for Kuwait gas bottling deal

09 March 2010

The $100m facility is for Kuwait Oil Tanker Company

India’s Larsen & Toubro has emerged as the frontrunner for a $100m-plus deal to build a liquefied petroleum gas (LPG) bottling facility in the north of Kuwait.

Larsen & Toubro’s price beat proposals from South Korea’s Hanwha Engineering & Construction, Ireland’s Kentz Overseas, Italy’s Saipem and France’s Entrepose Contracting during a 2 March bid round.

The project’s client, Kuwait Oil Tanker Company (KOTC), originally asked firms to submit proposals for the engineering, procurement and construction (EPC) contract by 26 January. On 24 January, the deadline was extended to 2 March after contractors submitted a series of technical questions on the deal (MEED 24:1:10).

The winning bidder will build a LPG bottling facility at Umm al-Aish, just north of Kuwait City. The facility will include six LPG storage tanks, pump and compressor stations and three production lines, each capable of filing 1,600 12 kilogramme bottles every hour.

KOTC is responsible for the international transportation of Kuwaiti crude as well as the marketing and distribution of LPG within the emirate.

The construction of the facility will support Kuwait National Petroleum Corporation’s planned fourth gas fractioning column at the Mina al-Ahmadi refinery. When built the column is expected to have a capacity to process 550 million cubic feet a day.

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